FINW · FinWise Bancorp

FinWise Bancorp reported first quarter 2026 results characterized by robust loan origination growth offset by credit quality headwinds in legacy portfolios. Loan originations reached $1.7 billion, a 38% increase year-over-year, driven by the scaling of established strategic programs and the onboarding of new fintech partnerships. Net interest income rose to $28.1 million from $24.6 million in the prior quarter, with net interest margin expanding significantly to 12.90%. This margin expansion was largely attributed to a change in estimate regarding the allocation of excess interest received on credit enhanced loans, which management now fully attributes to servicing and credit guarantee expenses rather than origination costs. Despite the top-line growth, net income declined to $2.7 million, or $0.20 diluted EPS, from $3.9 million in the prior quarter. CEO Jim Noone highlighted that results were impacted by elevated net charge-offs, specifically within a limited number of legacy SBA credits, which the company expects to remain elevated over the next few quarters. The efficiency ratio deteriorated to 66.3% from 50.5% in the prior quarter, reflecting the impact of increased credit enhancement guarantee and servicing expenses. Tangible book value per share increased to $14.34, and the Bank Leverage Ratio remained strong at 16.8%, nearly double the well-capitalized minimum requirement. Management expressed confidence in the long-term trajectory, citing a strengthening partner pipeline and disciplined execution.